Challenge of FMCG distributor .

1.Risk taking.                                                                                                                       

 Distributor has to give credit in market without any  proper legal agreement, hence high risk is involved in this process. Also we have discussed that,  in FMCG there are large number of buyers and sellers, in this case doing agreement with the buyer is not possible. Also in FMCG distributor has to acquire some new customer every month and need to give them credit. He does not  know the person whom he is offering credit.                                                                                                                 

2. Small transaction value .                                                                                                   

In FMCG , distributor has to do a very small amount of transaction . Particularly in retail market, the sale value may be Rs300 . Even some times distributor has to give credit for Rs300 only( This is my personal experience).  How pathetic is  a credit of Rs 300 in 21^st century. Also distributor need to maintain credit list of all the retailer and wholesaler, which is again a headache.                                                                  

3. Collecting  unsold goods. In FMCG all products have some best before date. After expiry or in unsold condition,  stock need to be collected from the market. Also distributor has to count all the unsold stock , keep these,   in  his own warehouse and  prepare claim sheet. This is a pathetic process.                                                              

 4. Finding honest manpower  is difficult.           

Pls read this book                                                                           

  In FMCG sector , distributor need to appoint RSA/PSR and these people are responsible for collecting order from market and supply, cash handling etc. So finding  right people for all these activity is not so easy.                                                                                                                 

5. Unwanted stock supply by the company or super stockiest. All  FMCG  company has some slow moving product and company or the super stockiest push these product to the distributor. Hence distributor’s money gets block.                                                                                                                                            

6. Product variant shortage.      

 All FMCG company has multiple product or SKU.  It has been observed in the real market, that some SKU or products remains  shortage regularly and distributor faces customer complain.                                                                                                                    

7. Failing to cover all the outlet.                                                                              

In FMCG,  distributor tries to cover all the outlet, but always it is not possible , due to small transaction or outlet in a spread out position or shopkeeper’s payment track record.                                                                                                                            

 8.Under cut price.                                                                                        

Under cutting price  is common in FMCG sector. Suppose I am a distributor for my own location. Now problem comes when my nearby distributor comes to my market and sell on a lower price than me . As result I have to loss my business for the month.               

                                                                                                                         

9. Distributor face any product related problem  before company. Distributor is the local guardian of any FMCG product, he works on behalf of a particular brand . If any quality related issue arises , distributor is the first person to face it.  Consumer comes to the distributor for any quality issues .